You must have heard of Uber – an app which allows you to order a cab to ride from one place to another in minutes.
Uber’s business model is a bit different than of a taxi service’s though. The main idea of Uber, as a business, is about facilitation of peer-to-peer transactions between service providers and customers. Usually these facilitation is enabled through a special mobile or web service, connected to both clients and providers. This kind of business is viable for transportation companies, hospitality industry, project funding, retail and even some of the service companies. This kind of projects usually embrace the idea of individual entrepreneurs or small businesses, which is very interesting for younger generation entering the labour market.
With very restrictive employment policies and, due to this, very high unemployment rates – in some countries nearly 45% – new generations are very likely to adopt entrepreneurship. According to a recent study published by the Bentley University, more than 67% of young adults under 35 are either already running their own businesses, or considering doing so upon graduation.
Moreover, a record-breaking number of people work in service sector than ever before. In developed countries this number comes closer to 2/3 of labour market. Therefore, “Uberized” businesses in the service economic sector usually enjoy the highest profits.
It is interesting and important to know that Uber has a fleet of drivers working for the company. However, these do not get social benefits which regular employees would. Workers are more like self-employed entrepreneurs rather than employees. Uberising helps them find more jobs and they can go offline whenever they wish.
So what do you need to do in order to “Uberize” your business? Here are the main three steps:
Your business needs to have a possibility of real-time booking which involves estimated time of arrival of your service so that the client could be ready to meet with the service provider.
Your business needs to provide a seamless experience from mobile and web applications – cashless payments would be a great advantage!
Your company needs to ensure there is a rating system to enable the best clients interact with the best workers, so that both parties share the best possible experience.
How can this business model help your company? We believe that this kind of sales model is the best for the uprising “shared” economy. You will get a lot of customers happy to interact with service providers for a lower price in a faster environment. Still having doubts about “uberizing” your business? Have a glance over the last year’s revenue numbers of some of the uberized companies:
- Uber — US$ 11.3 billion
- Lyft — US$ 2.2 billion
- BlaBlaCar — US$ 900 million
- AirBnB — US$ 2.6 billion
- CraigsList — US$ 694 million
- eBay — US$ 10.75 billion